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CHAPTER I INTRODUCTION INTRODUCTION TO HUMAN RESOURCE MANAGEMENTHuman resource is a major resource in the effective working of the organization. This resource needs to be handled in a systematic process for achieving optimized utilization of the other resource.HRM is a process of bringing people and organization together, so that the goals of each are met. It is the part of management process which is concerned with management of resource in an organization. It tries to secure best from people
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CHAPTER I
INTRODUCTION
INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
Human resource is a major resource in the effective working of the organization. This resource
needs to be handled in a systematic process for achieving optimized utilization of the other
resource.HRM is a process of bringing people and organization together, so that the goals of
each are met. It is the part of management process which is concerned with management of
resource in an organization.
It tries to secure best from people by winning their whole hearted co-operation. In short, it may
be defined as the process of procuring, development and maintaining competent work force to
achieve the goals of the organization in a effective and efficient manner.
Meaning
HRM is “the process of accomplishing organization objectives by acquiring, retaining,
terminating, developing and properly using the human resource in the organization
Definition
According to D. Yoder and others-“it is that phase of management which deals with the effective
control and use of manpower and distinguished from other sources of power”.
Scope of HRM
The scope of HRM is indeed vast. All major activities in the working life of a worker from the
time of his or her entry into an organization until he or she leaves comes under the preview of
HRM
Specified HR activities includes-
HR planning
Job analysis and design
Recruitment and selection
Orientation and placement
Training and development
Performance management
Performance appraisal
Job evaluation
Employee and executive remuneration
Motivation and communication
Welfare
Safety and health
Industrial relation and the like
HRM vs HRD
HRM AND HRD are used interchangeably, but these two are different terms.HRD is at the
center of HRM. so HRM is a wider term then HRD. there is a growing need to develop skills,
talents, capabilities, potentialities of people in the organization and this task is taken up in
HRM.HRD aims to develop individual employee in accordance with his aspiration and
potentialities on the one hand, the company’s requirement on the other.HRD programs are
described as training and educating programs
T.V.Roa and Udai Pareek have given six dimension of HRD
Performance appraisal
Employee counseling
Career development and planning
Training
Organizational development
INTRODUCTION TO PERFORMANCE APPRAISAL
Performance appraisal is the systematic evaluation of the individual with respect of his
performance on the job and his potential for development. Performance appraisal is defined as a
systematic, periodic evaluation of the work of an individual of an organization usually made by a
superior or someone in a position to observe his performance.
Traditionally appraising the individual performance has been know as merit rating, in recent
year, several newer terms have been coined to describe this method. Some of them are
performance appraisal, progress report, performance review, performance evaluation, employee
appraisal, personal review and so on.
Appraisals are carried out for helping the organization to determine the individual objectives,
promotion transfer and training needs and also personality development. Then appraiser though
accepting the above aims may see the appraisal interview having different purpose.
Unfortunately the appraisal so often seems something to be feared.
In performance appraisal, it is essential that the rates and raters, are fully aware of the system and
understand the methods for achieving and rewarding performance. The objectives or the purpose
of performance appraisal, the standards set, the methods followed and duration should be clear to
everyone who participates in it.
Performance appraisal is the step where the management finds out how effective it has been in
hiring and placing the employee in the organization.
In other word performance appraisal is a method of evaluating the behavior of employees in the
work spot, normally including both the quantities as well as qualitative aspects of job
performance.
Performance appraisal is a systematic and objective way of judging the relative worth or ability
of an employee in performing his job.
MEANING
Performance appraisal is “the process of evaluating the performance and qualification of
employees in terms of requirement of the job for which one is employed for the purpose of
administration including placement, selection for promotion, providing financial rewards and
other actions which require differential treatment among the member of group as distinguished
from actions affecting all members equally. Thus it is a process of estimating or judging the
value, excellence, qualities or status of employees individually or collectively in a group. It is a
part of staffing process.
DEFINATION
According to dale s. beach, “performance appraisal is the systematic evaluation of the individual
with respect to his/her performance on the job and his/her potential for development”.
According to Randall s Schuler, “Performance appraisal is the formal structure system of
measuring and evaluating an employee’s job related behavior and outcomes to discover how and
why the employee is presently performing on the job and how the employee can perform more
effectively in the future so that the employee, organization and society all are benefited”.
NEED FOR PERFORMANCE APPRAISAL:
Performance appraisal is needed in order to:
Provide feedback information about the level of achievement and behavior of subordinate.
Enable an organization to maintain an inventory of the number and quality of all manager
and to identify their training needs and aspiration so that it can be met.
Provide information about the performance ranks basing on which decision regarding salary
fixation, promotion, demotion and transfer decision are taken.
Suggesting ways of improving the employee’s performance after knowing that he has not
been up to mark in the review period.
Provide information, which helps to counsel the subordinates.
Prevent grievances and indisciplinary activities.
OBJECTIVES OF PERFORMANCE APPRAISAL:
To create and maintain satisfactory level of performance
To help each employees to understand more his role and become clear about his function
To contribute to the employee growth an development through training self and management
development programs
To help each employee to understand his strength and weekness with respect to his role and
functions in the organization
To help the superiors to have a proper understanding about their subordinates
To ensure organization effectiveness through correcting employees for standards and
improved performance and suggestion the change in the employee behavior
To guide job changes with help of continuous ranking
To provide information for making decision regarding lay off, retrenchment and so on
To facilitate fair and equitable compensation based on performance
To facilitate testing and validating selection test, interview techniques etc, through
comparing their scores with performance appraisal ranks.
USES OF PERFORMANCE APPRAISAL:
Performance appraisal enables management to make effective decision or correct their earlier
decision relating to the following issues
Performance improvement
Performance feedback allows employee, management and personal specialists to intervene with
appropriate action to improve performance.
Compensation adjustment
Performance evaluation helps the decision makers to determine who should receive the pay
raises
Placement decision
Promotion, transfer and demotions are demotions are usually based on past or anticipated
performance. Often promotions are the rewards for the past performance.
Career planning and development
Performance feedback guides career decision about specific career paths one should investigate.
Information inaccuracies
Poor performance may indicate error in job analysis, human resource plans or other personal
management information system
Equal employment opportunities
Accurate performance appraisals that actually measure job related performance ensure that
internal placement designs are not discriminatory
External changes
Sometimes performance is influenced by factors outside the work environment such as family,
health or other personal matters. If uncovered through appraisal, the human resource department
may be able to provide assistance
Feedback to human resource
Performance appraisal gives the necessary feedback to the human resource department regarding
all the aspects of the employee, which can be used by them to draw conclusions about employee.
THE PROCESS OF PERFORMANCE APPRAISAL SYSTEM:
Establish Performance Standards:
At the time of designing a job description, performance standards are usually developed for
the position. These standards should be clear and objective to be understood and measured.
These standards should be discussed with the supervisors to find out which different factors
are to be incorporated, weights, and points to be given to each factor. Then these point should
be indicated on the Appraisal Form, for appraising the performance of the employees.
Communicate Performance Expectations to employees:
The next step is to communicate these standards to the employees, otherwise the employees
would find it difficult to guess what is expected of them.
Measure actual Performance:
Four sources of information are frequently used to measure actual performance:
o personal observation,
o statistical reports,
o oral reports,
o written reports.
Compare actual Performance with Standards:
The employee is apprised and judged of his potential for growth and advancement. Attempts are
made to note deviations between ‘standard performance’ and ‘actual performance’.
Discuss the Appraisal with the Employee:
At the next stage, the results of appraisal are discussed periodically with the employees, where
good points, weak points, and difficulties are indicated and discussed so that performance is
improved.
Indicate Corrective Action:
The final step is the initiation of corrective action when necessary. Coaching and counseling may
be done or special assignment and projects may be set; persons may be deputed for formal
training courses, and decision-making responsibilities and authority may be delegated to the
subordinates.
STEPS FOR DEVELOPING A SYSTEMATIC PERFORMANCE
APPRAISAL:
Identify key performance criteria
Development of key performance criteria should be based on a comprehensive job description
and undertaken in consultation with employees.
Develop appraisal measures
In order to obtain accurate and valid performance appraisals, appraisal measures should be
tailored to the specific job or “job Steps for developing a systematic performance appraisal
family” (i.e., groups of similar jobs). An evaluation of factors in the work environment which
help or hinder performance is also recommended. This ensures that realistic expectations are set
for employee’s performance, and is also likely to increase the perceived fairness and
acceptability of performance appraisals.
Collect performance information from different sources
Traditionally, it has been the sole responsibility of managers / supervisors to assess performance.
However, other organizational members (e.g., clients, coworkers, subordinates) can be a valuable
source of information as they are likely to have exposure to different aspects of an employee’s
performance. Collecting information from multiple sources can increase the accuracy of
performance evaluation (i.e., reduce bias), and increase employee’s perceptions of fairness
Conduct an appraisal interview
The two central purposes of the appraisal interview are to:
o Reflect on past performances to identify major achievements, areas for further improvement,
and barriers / facilitators to effective performance
o . Identify goals and strategies for future work practice.
o The appraisal interview should be a constructive, two-way exchange between the supervisor
and employee, with preparation for the interview done by both parties beforehand.
o . Evaluate the appraisal process
FIVE DIFFERENT SOURCES OF PERFORMANCE APPRAISAL ARE:
Manager / supervisor appraisals
Self appraisals
Co-worker appraisals
Subordinate appraisals
Client appraisals.
Manager / supervisor appraisals:
Managers / supervisors play a central role in the appraisal process, and should always be
included as one of the main appraisers.
In essence, managers and supervisors have two roles in performance appraisal:
o “Judge”: assessing performance
o “Coach”: providing constructive feedback and identifying areas for improvement.
Performing both roles simultaneously can be difficult. Employees may be reluctant to admit
areas for improvement if performance assessment is linked with desired outcomes such as pay,
promotion or opportunities to work in desired areas. One solution is to separate the judge and
coach roles by conducting separate appraisal meetings.
Self-appraisals:
The process of evaluating one’s own performance can help to increase employee’s commitment
to the appraisal process, perceptions of appraisal fairness, and satisfaction with the appraisal
process. Self-appraisal can also be useful for identifying areas for development. Not surprisingly,
self-appraisals are usually biased towards leniency.
Strategies to increase the accuracy of self appraisals include:
Using clear definitions of performance criteria linked to specific, observable behaviors
Informing employees that their ratings will be checked and compared to other sources
of appraisal (i.e., for accuracy)
Ensuring employees receive regular feedback on their performance.
It is recommended that self appraisals are used for professional development purposes, rather
than for making administrative decisions (i.e., pay increases, promotion).
Co-worker appraisals:
Co-workers can provide valuable feedback on performance, particularly where teamwork occurs.
Co-workers are often aware of different aspects of a employee’s performance that managers may
not have the opportunity to observe. In addition, as there is usually more than one co-worker who
rates a worker’s performance, their evaluations tend to be more reliable. Co-worker evaluations,
however, may be biased towards those individuals most well liked in an organisation (i.e.,
friendship bias). Furthermore, co-worker appraisals may have a negative impact on teamwork
and cooperation if employees are competing with one another for organizational incentives and
rewards. It is recommended that co-worker appraisals are used for professional development
rather than administrative decisions.
Subordinate appraisals:
Subordinates are a valuable source of information regarding particular aspects of a supervisor or
leader’s performance such as communication, team building or delegation. Subordinates can
provide feedback to help managers / supervisors develop their skills in these areas. The focus
should be on aspects of managerial performance that subordinates are able to comment upon.
This source of appraisal may only be appropriate in larger organizations where there are
sufficient subordinates to allow anonymity.
Client appraisals:
Clients may also offer a different perspective on a employee’s performance, particularly for jobs
that require a high degree of interaction with people. For example, client appraisals can be a
valuable source of feedback regarding the quality of service provision (e.g., the quality of
interaction, degree of empathy, level of support, degree of professionalism).
Organizations often have performance contracts that specify goals and deliverables for client
outcomes. Whilst it is important that organizational goals and deliverables are reflected in the
appraisal criteria for individuals and teams, it is recommended that particular care be taken if
incorporating client outcomes.
Relying on client outcomes as an indicator of performance can have undesirable effects due to
the complex and sensitive nature of work. A range of factors may influence client outcomes,
many of which are outside the control of an individual employee. It is rare for a successful (or
otherwise) outcome to be the sole result of one person’s efforts. This makes client outcomes a
poor reflection of the quality of treatment provided by the employee.
STRATEGIE TO SUPPORT APPRAISER AND ENHANCE APPRAISAL
ACCURACY:
Rating another person’s performance is not an easy task, particularly with complex jobs or
performance criteria. Strategies to support appraisers and increase the likelihood of accurate
assessments include:
Providing practical training in rating techniques, which includes opportunities to
practice appraising performance and providing feedback
Limiting the assessment to performance criteria that an appraiser has observed /
experienced in regard to the employee
Providing structured assessment tools with clear explanations regarding the criteria to
be assessed, and performance standards.
METHODS OF PERFORMANCEAPPRAISAL:
Past-oriented methods
Rating Scales:
The rating scale method offers a high degree of structure for appraisals. Each employee trait
or characteristic is rated on a bipolar scale that usually has several points ranging from
“poor” to “excellent” (or some similar arrangement).
The traits assessed on these scales include employee attributes such as cooperation,
communications ability, initiative, punctuality and technical (work skills) competence. The
nature and scope of the traits selected for inclusion is limited only by the imagination of the
scale’s designer, or by the organization’s need to know.
The one major provision in selecting traits is that they should be in some way relevant to the
appraisee’s job.
Advantages
The greatest advantage of rating scales is that they are structured and standardised. This allows
ratings to be easily compared and contrasted - even for entire workforces.
Each employee is subjected to the same basic appraisal process and rating criteria, with the same
range of responses. This encourages equality in treatment for all appraisees and imposes standard
measures of performance across all parts of the organization.
Rating scale methods are easy to use and understand. The concept of the rating scale makes
obvious sense; both appraisers and appraisees have an intuitive appreciation for the simple and
efficient logic of the bipolar scale. The result is widespread acceptance and popularity for this
approach.
Disadvantages
Trait Relevance
Are the selected rating-scale traits clearly relevant to the jobs of all the appraisees? It is
inevitable that with a standardized and fixed system of appraisal that certain traits will have a
greater relevance in some jobs than in others.
For example, the trait “initiative” might not be very important in a job that is tightly defined and
rigidly structured. In such cases, a low appraisal rating for initiative may not mean that an
employee lacks initiative. Rather, it may reflect that fact that an employee has few opportunities
to use and display that particular trait. The relevance of rating scales is therefore said to be
context-sensitive. Job and workplace circumstances must be taken into account.
Systemic Disadvantage
Rating scales, and the traits they purport to measure, generally attempt to encapsulate all the
relevant indicators of employee performance. There is an assumption that all the true and best
indicators of performance are included, and all false and irrelevant indicators are excluded.
This is an assumption very difficult to prove in practice. It is possible that an employee’s
performance may depend on factors that have not been included in the selected traits. Such
employees may end up with ratings that do not truly or fairly reflect their effort or value to the
organization. Employees in this class are systemically disadvantaged by the rating scale method.
Perceptual Errors
This includes various well-known problems of selective perception (such as the horns and halos
effect) as well as problems of perceived meaning.
Selective perception is the human tendency to make private and highly subjective assessments of
what a person is “really like”, and then seek evidence to support that view (while ignoring or
downplaying evidence that might contradict it).
This is a common and normal psychological phenomenon. All human beings are affected by it.
In other words, we see in others what we want to see in them.
An example is the supervisor who believes that an employee is inherently good (halo effect) and
so ignores evidence that might suggest otherwise. Instead of correcting the slackening employee,
the supervisor covers for them and may even offer excuses for their declining performance.
On the other hand, a supervisor may have formed the impression that an employee is bad (horns
effect). The supervisor becomes unreasonably harsh in their assessment of the employee, and
always ready to criticize and undermine them.
The horns and halo effect is rarely seen in its extreme and obvious forms. But in its more subtle
manifestations, it can be a significant threat to the effectiveness and credibility of performance
appraisal.
Perceived Meaning
Problems of perceived meaning occur when appraisers do not share the same opinion about the
meaning of the selected traits and the language used on the rating scales.
For example, to one appraiser, an employee may demonstrate the trait of initiative by reporting
work problems to a supervisor. To another appraiser, this might suggest an excessive dependence
on supervisory assistance - and thus a lack of initiative.
As well, the language and terms used to construct a scale - such as “Performance exceeds
expectations” or “Below average skill” - may mean different things to different appraisers.
Rating Errors
The problem here is not so much errors in perception as errors in appraiser judgement and
motive. Unlike perceptual errors, these errors may be (at times) deliberate.
The most common rating error is central tendency. Busy appraisers, or those wary of
confrontations and repercussions, may be tempted to dole out too many passive, middle-of-the-
road ratings (e.g., “satisfactory” or “adequate”), regardless of the actual performance of a
subordinate. Thus the spread of ratings tends to clump excessively around the middle of the
scale.
This problem is worsened in organizations where the appraisal process does not enjoy strong
management support, or where the appraisers do not feel confident with the task of appraisal.
Check-list Method:
Under this method, checklist of “Statements of Traits” of employee in the form of Yes or No
based questions is prepared. Here, the rater only does the reporting or checking and HR
department does the actual evaluation. The rater concerned has to tick appropriate answers
relevant to the appraises. When the check-list is completed, it is sent to HR department for
further processing. Various questions in the check list may have either equal weightage or more
weightage may be given to those questions which are more important. The HR department then
calculates the total scores which show the appraisal result of an employee.
Advantages :
economy, ease of administration, limited training required, standardization.
Disadvantages
Rater’s biases, use of improper weights by HR Dept, does not allow rater to give
relative ratings.
Force Choice Method:
A series of statements arranged in the blocks of two or more are given and the rater indicates
which statement is true or false. The rater is forced to make a choice. HR department does actual
assessment.
Advantages
Absence of personal biases because of forced choice.
Disadvantages
Statements may not be correctly framed.
Force Distribution Method: One of the problems faced in large organizations is relative
assessment tendencies of raters. Some are too lenient and others too severe. This method
overcomes that problem. It forces everyone to do a comparative rating of all the employees on a
predetermined distribution pattern of good to bad. Say 10% employees in Excellent Grade, 20%
in Good Grade, 40% in Average Grade, 20% in Below Average Grade and 10% in unsatisfied
grade. The real problem of this method occurs in organizations where there is a tendency to pack
certain key departments with all good employees and some other departments with discards and
laggards. Relatively good employees of key departments get poor rating and relatively poor
employees of laggards’ departments’ get good rating.
Critical Incident Method:
In this method, only critical incidents and behavior associated with these incidents are taken for
evaluation. This method involves three steps. A test of noteworthy on the
job behavior is prepared. A group of experts then assigns scale values to them depending on the
degree of desirability for the job. Finally, a checklist of incidents which define good and bad
employees is prepared.
Advantages
This method is very useful for discovering potential of employees who can be useful in critical
situation.
Disadvantages
Negative incidents are, generally, more noticeable than positive ones.
The recording of incidents is a core to the superior and may be put off and
easily forgotten.
Overly close supervision may result.
Essay Method:
In the essay method approach, the appraiser prepares a written statement about the employee
being appraised. The statement usually concentrates on describing specific strengths and
weaknesses in job performance. It also suggests courses of action to remedy the identified
problem areas.
The statement may be written and edited by the appraiser alone, or it be composed in
collaboration with the appraisee.
Advantages
The essay method is far less structured and confining than the rating scale method. It permits the
appraiser to examine almost any relevant issue or attribute of performance. This contrasts sharply
with methods where the appraisal criteria are rigidly defined.
Appraisers may place whatever degree of emphasis on issues or attributes that they feel
appropriate.
Thus the process is open-ended and very flexible. The appraiser is not locked into an appraisal
system the limits expression or assumes that employee traits can be neatly dissected and scaled.
Disadvantages
Essay methods are time-consuming and difficult to administer. Appraisers often find the essay
Technique more demanding than methods such as rating scales. The techniques greatest
advantage - freedom of expression - is also its greatest handicap. The varying writing skills of
appraisers can upset and distort the whole process. The process is subjective and, in
consequence, it is difficult to compare and contrast the results of individuals or to draw any
broad conclusions about organizational needs
Grading
In this method, certain categories of abilities of performance are defined well in advance and
person are put in particular category depending on their traits and characteristics. Such
categories may be definitional like outstanding, good, average, poor, very poor or may be in
terms of letter like A, B, C, D etc with A indicating the best and D indicating the worst. This
method, however, suffers from one basic limitation that the rater may rate most of the employees
at higher grades.
Performance Tests & Observations:
This is based on the test of knowledge or skills. The tests may be written or an actual
presentation of skills. Tests must be reliable and validated to be useful.
Advantage
Tests only measure potential and not attitude. Actual performance is more a function
of attitude of person than potential.
Disadvantages
Sometimes costs of test development or administration are high
Confidential Reports :
Though popular with government departments, its application in industry is not ruled out. Here
the report is given in the form of Annual Confidentiality Report (ACR). The system is highly
secretive and confidential. Feedback to the assessee is given only in case of an adverse entry.
Disadvantage is that it is highly prone to biases and recency effect and ratings can be
manipulated because the evaluations are linked to future rewards like promotions, good postings,
etc.
Comparative Evaluation Method (Ranking & Paired Comparisons):
These are collection of different methods that compare performance with that of other co-
workers. The usual techniques used may be ranking methods and paired comparison method.
o Ranking Method :
Superior ranks his worker based on merit, from best to worst. However how best and why best
are not elaborated in this method. It is easy to administer.
o Paired Comparison Method :
In this method each employee is paired with every other employee in the same cadre and then
comparative rating done in pairs so formed. The number of comparisons may be calculated with
the help of a formula – N x (N-1) / 2. The method is too tedious for large departments and often
such exact details are not available with rater.
Future-Oriented Methods
MBO (Appraisal By Results ) :
The use of management objectives was first widely advocated in the 1950s by the noted
management theorist Peter Drucker. MBO (management by objectives)methods of performance
appraisal are results-oriented. That is, they seek to measure employee performance by examining
the extent to which predetermined work objectives have been met. Usually the objectives are
established jointly by the supervisor and subordinate. Once an objective is agreed, the employee
is usually expected to self-audit; that is, to identify the skills needed to achieve
the objective. Typically they do not rely on others to locate and specify their strengths and
weaknesses. They are expected to monitor their own development and progress.
Advantages
The MBO approach overcomes some of the problems that arise as a result of assuming that the
employee traits needed for job success can be reliably identified and measured. Instead of
assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or
exceeds the set objectives, then he or she has demonstrated an acceptable level of job
performance. Employees are judged according to real outcomes, and not on their potential for
success, or on someone’s subjective opinion of their abilities. The guiding principle of the MBO
approach is that direct results can be observed, whereas the traits and attributes of employees
(which may or may not contribute to performance) must be guessed at or inferred. The MBO
method recognizes the fact that it is difficult to neatly dissect all the complex and varied
elements that go to make up employee performance.
MBO advocates claim that the performance of employees cannot be broken up into so many
constituent parts - as one might take apart an engine to study it. But put all the parts together and
the performance may be directly observed and measured.
Disadvantages
MBO methods of performance appraisal can give employees a satisfying sense of autonomy and
achievement. But on the downside, they can lead to unrealistic expectations about what can and
cannot be reasonably accomplished. Supervisors and subordinates must have very good “reality
checking” skills to use MBO appraisal methods. They will need these skills during the initial
stage of objective setting, and for the purposes of self-auditing and self-monitoring.
Unfortunately, research studies have shown repeatedly that human beings tend to lack the skills
needed to do their own“reality checking”. Nor are these skills easily conveyed by training.
Reality itself is an intensely personal experience, prone to all forms of perceptual bias. One of
the strengths of the MBO method is the clarity of purpose that flows from a set of well-
articulated objectives. But this can be a source of weakness also. It has become very apparent
that the modern organization must be flexible to survive. Objectives, by their very nature, tend to
impose a certain rigidity. Of course, the obvious answer is to make the objectives more fluid and
yielding. But the penalty for fluidity is loss of clarity. Variable objectives may cause employee
confusion. It is also possible that fluid objectives may be distorted to disguise or justify failures
in performance.
Assessment Center Method :
This technique was first developed in USA and UK in 1943. An assessment centre is a central
location where managers may come together to have their participation in job related exercises
evaluated by trained observers. It is more focused on observation of behaviours across a series of
select exercises or work samples. Assesses are requested to participate in in-basket exercises,
work groups, computer simulations, role playing and other similar activities which require same
attributes for successful performance in actual job.
Advantages
Well-conducted assessment centre can achieve better forecasts of future performance and
progress than other methods of appraisals. Also reliability, content validity and predictive ability
are said to be high in Assessment Centers. The tests also make sure that the wrong people are not
hired or promoted. Finally, it clearly defines the criteria for selection and promotion.
Disadvantages
Concentrates on future performance potential. No assessment of past performance. Costs of
employees travelling and lodging, psychologists. Ratings strongly influenced by assessee’s inter-
personal skills. Solid performers may feel suffocated in simulated situations.
360 Degree Appraisal:
It is a technique in which performance data/feedback/rating is collected from all sections of
people employee interacts in the course of his job like immediate supervisors, team members,
customers, peers, subordinates and self with different weightage to each group of raters. This
technique has been found to be extremely useful and effective. It is especially useful to measure
inter-personal skills, customer satisfaction and team building skills. One of the biggest
advantages of this system is that assesssees cannot afford to neglect any constituency and has to
show all-round performance. However, on the negative side, receiving feedback from multiple
sources can be intimidating, threatening, expensive and time consuming.
Psychological Appraisals:
These appraisals are more directed to assess employees potential for future performance rather
than the past one. It is done in the form of in-depth interviews, psychological tests, and
discussion with supervisors and review of other evaluations. It is more focused on employees
emotional, intellectual, and motivational and other personal characteristics affecting his
performance. This approach is slow and costly and may be useful for bright young members who
may have considerable potential. However quality of these appraisals largely depends upon the
skills of psychologists who perform the evaluation
Performance counseling
Once the performance of the employee is appraised, the organization has to practice and pay
enough attention to perfect counseling, to review the system that aims at developing employee.
The superior after appraisal should tell the appraised employee in which he is good and in which
he is not. He should also guide him to improve in which he does not master.
Thus, the purpose of counseling is to help employee to be aware of his own strength and
weakness, opportunities available for development and the threats in the form of technological
changes etc .The superior can do performance counseling in the form of interviews.
PROBLEMS OF PERFORMANCE APPRAISAL:
None of the methods for appraising is absolutely valid or reliable. each has its own strengths and
weakness
Failure of superior in conducting perfect appraisal and post performance appraisal interview.
Most part of appraisal is based on subjectivity
Negative rating affect interpersonal relations
Feedback and post appraisal interview may have setback on production
Some superiors completed appraisal reports within a few minutes
Relationship between appraisal rates and performance after promotion was not significant
Some rating particularly about the potential appraisal are not purely based on work
ESSENTIALS FOR A SUCCESSFUL PERFORMANCE APPRAISAL
SYSTEM
Basing appraisals on accurate and current job descriptions
Ensuring that appraisers have adequate knowledge and direct experience of the employee’ s
performance
Providing ratings via aggregated anonymous feedback when multiple sources of
Information are used
Incorporating performance appraisals into a formal goal setting system
Offering adequate support and assistance to employees such as professional development
opportunities in order to improve their performance
Conducting appraisals on a regular basis (at least two times a year) rather than annually.
CHARACTERISTICS OF AN EFFECTIVE PERFORMANCE APPRAISAL
SYSTEM :
Simple and easy to understand
Managers doing the evaluation must perceive that it is in their personal and career interests to
conduct accurate appraisals
Should ensure employee participation
Communicate to the employee how they have performance
It should be objectives rather than subjective
It should emphasize on perfect and not on personality
It should communicate to all concerned people
Create an atmosphere of confidence and trust so that both supervisor and employee may
discuss matter frankly and offer suggestion
Beneficial suggestion for the organization and for the employees
Establishment of perfect standard and arrangement of post appraisal interviews
PERFPRMANCE APPRAISAL PROCESS
Objectives of appraisal
The first and foremost step in the appraisal process is to see the objectives of performance
appraisal, that is what is to be measured in the process for what it is to be measured and the
like.
Establish job expectation
The second step in the appraisal process is to establish job expectation. This includes
informing the employee what is expected of him or her on the job. Individual should not be
expected to begin his job until he understands what is expected of them.
Design an appraisal program
Objectives of PA
Establish job expectations
Appraisal performance
Performance appraisal
Achieve appraisal data
Use appraisal data for appropriate purpose
Performance
Management
Design appraisal programme
Designing an appraisal programme poses several questions which need answer. they are:
o Formal v/s informal appraisal
o Whose performance is to be assessed?
o Who are the raters?
o What problems are encountered?
o How to solve the problems?
o What should be evaluated?
o When to evaluate?
o What methods of appraisal are to be used? And the like.
Appraise the performance
the next step in the appraisal process is to measure the performance. What then is performance?
Performance is essentially what an employee does or does not do employee performance
common to most jobs include the following elements.
o Quantity of output
o Quality of output
o Timeliness of output
o Presence of work
o Co-operativeness
o Job knowledge
o Leadership abilities
o Judgment
o Supervision
o versatility
o Health
Performance measurement needs to be based on the benchmarks listed above.
Performance management
Performance appraisal provides feedback about employee job performance. Getting feedback is
not enough. Three more activities need to be undertaken to complete the process, they are:
o Performance interview
o Archiving performance data
o Use of appraisal data
LIMITATIONS OF PERFORMANCE APPRAISAL
Performance appraisals are subject to a wide variety of in accuracies and biases referred to as
“rating error”. These errors occur in the raters observation, judgment and information processing
and can seriously affect assessment result, the most common rating errors are:
Leniency or severity/strictness
The evaluation has their own value system which acts as a standard for evaluation. Some
evaluation may be lenient and will give rating to everyone. On the other hand, an evaluator may
be strict and will give low rating to all persons, the tendency of high rating is known as positive
leniency error and tendency to give lower rating is called negative leniency error.
Central tendency
This occurs when employees are incorrectly rated near the average or middle of the scale. The
altitude of rater is to play safe this safe playing attitude stems from certain doubts and anxieties
which the raters have while assessing the rates. neither he will rate them as a poor performance
nor he will rate them outstanding.
Halo error
A halo error takes place when one aspect of an individual’s performance influence the evaluation
of the entire performance of the individual. The appraiser judges a person on the strength of a
specific trait and doesn’t base his inference on his overall performance.
Rater’s effect
This includes favoritism, stereotyping and hostility. Excessively high or low scores are given
only certain individuals or group based on the rater’s attitude towards the rate, not on actual
outcomes or behavior.
Primacy or regency effect
The rater’s ratings are heavily influenced either by behavior exhibitive the rater during the early
stages of the review period (primacy)or by outcome or behavior exhibited by the rate near the
end of the review period(renency).
Perpetual set
This occurs when the raters assessment is influenced by previously held beliefs.
Performance dimension order
Two or more dimensions on a performance instrument followed or closely follow each other and
both describe or rotate to a similar quality. The rater raters the dimension accurately and rates the
second dimension has been arranged in a significantly different order, the ratings might have
been different.
Spillover effect
This refers to allowing past performance appraisal rating to unjustifiably influence current
ratings. Past rating good or bad, results in similar rating for the current period although the
demonstrated behavior does not deserve the rating, good or bad.
Status effect
It refers to overrating of employee in higher level job or jobs held in high esteem and under
rating employees in lower level job or jobs held in low esteem.
CHALLENGES OF PERFORMANCE APPRAISAL
With the increased significance of performance appraisal, challenges confronting the system
are mounting. One serious challenge facing the performance appraisal system relates to
assessment of self managed terms, popularly called empowered terms, these self managed
teams create special challenges for performance appraisals-empowered teams perform
without supervisors.
To create a culture of excellence that inspired every employee to improve and lend himself or
herself to be assessed.
To align organization objective to individuals aspirations
To clear growth paths for talented individuals
To provide new challenges to rejuvenate careers that have reached the plateau stage
To forge a partnership with people for managing their careers
To empower employee to make decisions without the fear of failing
To embed teamwork in all operational processes
Debureaucratise the organization structure for ease of flow of information
HOW APPRAISAL MAY BE MADE SUCESSFUL?
The rater must be thoroughly well versed in the philosophy and nature of the rating system
factors and factor scales must be thoroughly defined, analysed and discussed.
The success of an appraisal programme depends upon:
The existence of an atmosphere of confidence and trust so that both supervisors and
employee may discuss matters frankly and offer suggestions which may be beneficial for the
organization and for an improvement of the employee
The supervisor must very thoroughly evaluate the employee’s performance so that he is
capable of meeting challenges about his ratings of his sub-ordinates
The result of performance rather than personality traits should be given due weight
suggestions for improvement should be directed towards the objective facts of the job. plans
for the future must be developed jointly after consultation with sub-ordinates.
The individual as a person should never be criticized
The supervisor should try to analyse the strengths and weaknesses of an employee and advise
him on correcting the weakness
The appraisal programme should be less time consuming and less costly at the same time, it
should bring the maximum benefit.
Which particular technique is to be adopted for appraisal should be governed by such factors
as the size, financial resources, philosophy and objectives of an organization.
The result of the appraisal, particularly when they are negative should be immediately
communicated to the employees, so that they may try to improve their performance
The post- appraisal interview should be arranged so that employees may be supplied with
feedback and the organization may be supplied with feedback and the organization may
know the difficulties under which employees work, so that their training needs may be
discovered
The standards of performance appraisal can be improved by training of the evaluators. It has
been indicated that appraisers who are trained in how to evaluate sub-ordinates tend to be
more effective appraisers than those who had not undergone such training
Lastly , many of the problems or hindrances can be minimized if right appraisal tools are
chosen
Research
Design
CHAPTER II
RESEARCH DESIGN
TITLE OF THE STUDY
“A STUDY ON EFFECTIVENESS OF PERFORMANCE APPRAISAL OF
EMPLOYEE’S OF PSU’S WITH SPECIAL REFERENCE TO BEML LIMITED”
INTRODUCTION:
Performance appraisal can be understood as the assessment of an individual’s performance in a
systematic way, the performance being measured against factors such as job knowledge, quality
of output, initiative, leadership abilities, supervision, dependability, Co-operation, judgment,
versatility, health, and the like.
The other terms used for Performance appraisal are performance rating, employee assessment,
employee performance review, performance appraisal and performance evaluation.
STATEMENT OF PROBLEM
To check the employee’s performance and their relation which effects the productivity and
efficiency of the organizational objectives. Hence the study is been initiated .
OBJECTIVE OF THE STUDY
To study the procedures used in the process of performance appraisal.
To know the level of the performance of the employees of BEML Limited.
To study the relationship between performance appraisal, promotion and pay.
To study the impact and effects of performance appraisal on the motivation and morale of
the employees in terms of their beliefs, norms, expectations, life style and work style.
To offer recommendations and suggestions to the management if necessary.
METHODOLOGY AND RESEARCH DESIGN
Survey method has been used in this research study.
The methodology here refers to the systematic method used to collect data for
the research purpose.
Here the sampling is stratified sampling. The data collection was done by using questionnaire.
The data analysis and interpretation was done using bar chart and pie chart.
SOURCES OF DATA COLLECTION
PRIMARY DATA COLLECTION:-
Interaction with the management and the employees.
Questionnaire
SECONDARY DATA COLLECTION:-
Websites
Journals
Magazines
Company manuals
SAMPLING SIZE:-50 samples
LIMITATIONS OF THE STUDY
The study is for an academic purpose only for a particular period.
Due to the time constrain some employees were not able fill the questionnaire completely.
The division of the organization are spread and the study is confined to BEML Limited.
PLAN OF ANALYSIS
In this study the plan of analysis has been done by using tools of comparison by using the pie
chart, bar graph etc and then conducting analysis of the study made and interpreting the results of
the research has been carried out.
Data collected has been tabulated, correlated and analyzed
The analyzed data has been represented in the form of graphs, charts and diagrams.
CHAPTER SCHEME
I INTRODUCTION
II RESEARCH DESIGN
III COMPANY PROFILE
IV ANALYSIS AND INTERPRETATION OF DATA
V SUMMARY OF FINDINGS, SUGGESTIONS & CONCLUSION
BIBLIOGRAPHY & ANNEXURS
CHAPTER III
COMPANY PROFILE
Bharat Earth Movers Limited (BEML) incorporation in May 1964 with its corporate offices at
Bangalore and commenced operations from 1st January 1965, the production units of the
company are located at Bangalore, Kolar gold field, and Mysore in Karnataka. The company is
engaged in the production of rail coaches, rail bus, and Direct current electrical Multipurpose
Unit for India railways, heavy duty trucks/its variants, crash fire tenders, heavy recover vehicles,
PMS bridges, and earth moving equipment’s and aggregates for Defense. Other major customers
of BEML are Coal India Limited. Natively Lignite Corporation Associated Cement Company,
Steel Authority Of India Limited and The National Hydro Electric Thermal Power Corporation.
Bharat Earth Movers Limited is a premier ISO 9000 company in India and the second largest
manufacture of earth moving equipment in Asia. A three-decade-old multi-location and multi-
product company, BEML has vital application in diverse sectors of economy such as coal,
mining, steel, cement, powder, irrigation, construction, and road building, and railway. It has
expanded its product range to cover high-quality hydraulics, heavy duty diesel engines, welding
robots and undertaking of heavy fabrication jobs.
A public sector undertaking, BEML commands 70% market share in domestic earth mover
industry. Nearly 40% of its quality has divested to financially institutions and public. BEML has
its corporate headquarters and central marketing division at Bangalore.
BEML manufactures wide range of products to meet the needs of mining, construction, power,
irrigation, fertilizer, cement, steel, and rail sectors. The earth moving equipment includes
bulldozers, dump trucks, hydraulic, excavators, wheel loaders, rope shovels, walking draglines,
motor graders, and scarpers.
BEML has recently introduced road headers and slide discharge loaders for underground mining
applications. Railway products include integral rail coaches, electrical multiple units, rail buses,
track laying equipment’s, and overhead equipment inspection cars.
BEML manufacture heavy duty trucks and trailers and hydraulic aggregates for transportation
sector. The company also manufactures high power diesel engines and heavy duty hydraulic
aggregates to meet specific customer requirements. The company plans to diversify into varied
activities including underground mining equipment, underground for petro-products, leasing,
financial services, and joint ventures abroad.
BEML is rated as the first amongst the fastest growing construction equipment in India
(construction world-NICMAR SURVEY-2005). It is today leading the infrastructure revolution
in the country with successful foray in to hi-tech metro trains. Being a multi-technology, multi-
unit, and multi-location company, BEML offers high quality products for diverse sectors of the
economy such as coal, mining, construction, power, irrigation, fertilizers, cement, steel, road
building, Defense, metro and railways. It has come to forefront of heavy engineering industry
with a track record of growth and profit in the last for decades.
With increase focus on quality, safety and productivity, BEML is evolving new technologies and
aiming at value-addition in all its process and products.
The company’s manufacturing facilities are certified under ISO 9001-2000 series. Its strategic
alliances with global partners have ensured a continuous flow of state of art technologies and
gain international competence. With impetus on market driven R&D, BEML has ruled out
several innovative products. The company has established R&D center of excellence for metro
technology to match world-class standards with grant received from planning commission,
Government of India. BEML’s nationwide network of sales offices enables buyer with ready
access to its wide range of products and services.
Its service center, repair shops and part depots provide total equipment care and availability of
machines through prompt after sales-service. Today band of products are popular in over 30
countries across the world in Asia, Europe, middle-East and Latin America. The company is in
the process of opening overseas offices at Singapore and China
BACK GROUND AND INCEPTION OF COMPANY
BEML is a PSU under the effective administration of Ministry of Defense (department of
Defense supply). The organization was setup in the late 40’s as part of HAL now known as
“HINDUSTAN AERONATICS LIMITED” to manufacture rail coaches. It gradually diversified
earth moving equipment in 1964, the company was incorporated in the first year plan when India
was very weak economically. The main objective of setting up the organization was to
manufacture heavy earth moving equipment. Rail coaches heavy duty trucks, trucks-laying
equipment, etc.
NATURE OF BUSISINESS CARRIED:
BEML is equipped in production equipment for the industries such as construction and mining
Defense aviation and the METRO and RAILWAY sector.
CONSTRUCTION AND MINING
For development in surface mining projects, BEML produces machines such as electric shovels,
hydraulic, excavators, bulldozers, wheel loaders, wheel dozer, dump trucks, motor grades,
pipelines, and tyre handlers. Besides, giants walking draglines for cost effective operations in
the open cost mines are manufactured. BEML has diversified into underground mining with
products such as side discharge loader, lad haul dumper, winch winder, randy car, and skip, etc.
BEML has an active fleet of machines to take up works related to road construction,
infrastructure, development, port handling, tuning boring, and petroleum projects.
The company is floating a joint venture soon to take upon contract mining and maintenance of
mining equipments.
DEFENCE AND CIVIL AVIATION:
BEML’s multi-role vehicle and transport trailers have found total acceptance with arms forces.
The company has started manufacturing the entire range of value added TATRA vehicles. Which
are robust and suitable for all terrain operations including bridge layer field artillery, tractor,
medium/heavy recovery vehicles and pontoon mainstream bridge system, BEML also supplies
engineering mine ploughs, armored recovery vehicles, and weapon loading equipment. For the
civil aviation sector, BEML offers passenger Aerobridges, crash fire tender and aircraft towing
tractor.
METRO AND RAILWAY SECTOR:
BEML is today geared up for manufactured and supply of hi-tech stainless steel metro to
upcoming urban infrastructure projects in various cities.
Other products supplied for Indian railways include integral rail coaches, overhead inspection
cars, track laying equipment broad gauge rail bus, treasury vans and spoil disposal vans. It also
offers electric multiple units for development in suburban services.
The company also manufactures heavy duty diesel engines, diesel generator sets, and hydraulic
aggregates. BEML has entered into alliance with international partners for several new products
with include multi utility armed vehicles, mine laying vehicles, long wall mining system,
tunneling equipment, mine protected vehicles, surface miners, etc.
COMPANY VISION:
The vision is to achieve a turnover of $1.15 billion (Rs. 5000 corers) by 2013-14, which
translates in to a compounded growth rate of 12%. The management has infused this vision into
10000 employees and will grow across all three divisions. Mining and construction segment, we
see a 15-20% growth rate will be between 8% and 1000%. At that moment two-third of our top
line and bottom line is contributed by mining and construction.
BEML has earned a modest profit of 100 million in the rail business: they have now achieved a
critical mass and hence likely to enhance contribution to the bottom line.
Build total self-reliance in earthmover and related technology.
Adopt technology to suit national requirement particularly in vital se tor such as construction,
mining, irrigation, railways, transportation, and automation.
Update current products for higher performance and reliability.
Generate know-why through applied research.
Design and develop products in identified technology areas.
Set p test facilities of evaluation of performance and reliability of vehicles and system.
COMPANY MISSION:
To achieve and retain a dominant position in the manufacture and supply of earthmoving,
mining, construction, railway, and Defense equipment by establishing high standards of
quality, capability, and reliability.
To pursue state-of-the-art environment friendly technologies as well as develop cost effective
and value-added products.
To be competitive, responsive, and continuously improve services so as to ensure total
customer satisfaction.
To grow into global company guided by a keen sense of vision and business ethics as well as
to maximize earnings.
To conserve energy eliminate and waste through optimum utilization of men, money,
materials, and machinery.
COMPANY OBJECTIVE
To maintain a dominant position in design, development, manufacture, and marketing of
defense, earthmoving, and constructions and rail and metro equipments.
To diversify and grow.
To provide total engineering solution to its customer.
To internationalize operations by enhancing exports.
To maintain state-of-art technology for all products.
Re-orientation of the business operations to match the present scenario.
Continues building of skills and competencies to bring about executive effectiveness for
management succession.
QUALITY POLICY:
“Quality is the hallmark of excellence”
At BEML, a corporate quality policy emphasizing total quality management ensures the quality
system adopted companywide to meet stringent standards and requisite performance criteria. A
separate quality spearheads the thrust towards total quality. All the manufacturing units in the
company are under ISO 9001-2000 certification.
BEML equipment works in hospitable terrain under grueling operating conditions. In order to
ensure optimum performance of equipment each product is tested in working conditions. In order
to ensure optimum performance equipment each product is tested in working condition in the
company’s own track and fields. Vendor assessment and development is a key component of the
company’s strategy for achieving total quality.
Experience professional work with vendors to improve directions to the quality improvement
activities.
“To offer products and services to the satisfaction of customers and strive to upgrade quality
continuously” is the quality adopted in BEML.
PRODUCT PROFILE:
BEML products that is “ Machine that build the nation” find their application in core sector of
economy in the country viz., mining, agriculture, energy, irrigation, cement, steel, construction,
rail, and road transport apart from Defense.
The company has three ranges of product like earth moving equipment’s, Defense product and
railways products.
The earth moving equipment’s include bulldozers, dump trucks, hydraulic excavator, wheel
loaders, wheel loaders, wheel dozers, tyre handlers, pipe layers, rope shovels, draglines, motor
graders, scrapers, water sprinklers, aircraft towing tractors, and backhoe loader. BEML has
recently introduced road headers and side discharge loaders of underground mining application,
track laying equipment, inspections cars. BEML manufacture heavy duty trucks and trailers and
hydraulics aggregates for transportation sector. apart from this, BEML also radio controls
disaster management equipment in case of emergencies.
BEML PRODUCTS
Mining machines.
Electric shovels.
Bulldozers.
Wheel dozers.
Dump trucks.
Motors graders.
BEML PRODUCTS
Mining machines.
Electric shovels.
Bulldozers.
Wheel dozers.
Dump trucks.
Motors graders.
Pipe layer and type handler.
Giant walking dragline for cost item.
DEFENSE EQUIPMENTS
BEML-Tetra T815 vvnc8*8Vehicle.
BEML-Tetra T815 VVL8*8 Vehicle.
BEML-Tetra T815 VT18*8- Tank Transportation.
BEML-Tetra T815 VVNC6*6 High Mobility Vehicle.
BEML-Tetra T815 VVNC6*6 Field Artillery Tractor.
BEML-Tetra T815 V1 4 *4 High Mobility Vehicle.
PRATHVI missile launcher.
OXIDISER carrier.
WARDHEAD carrier.
FUEL carrier vehicle.
MISSILE Transporter.
10T mobile crane.
Ammunition Loader.
Pontoon Bridge Set.
Pontoon Truck.
Truck mounted crane.
Pavement laying truck.
DOLLY.
Light recovery vehicle.
Armored recovery vehicles.
Backhoe loader transporter.
RAILWAYS
Passenger coaches.
DC electrical multiple units (DC-EMUS)
AC electrical multiple units (AC-EMUS)
Track laying equipments.
Rail bus.
Spoil disposal units (SDU)
Treasury vans.
Mail rail coaches.
DIESEL ENGIES
100-1000 hp engines for contribution and mining equipment.
Irrigation pumps.
Marine vessel engines.
Compressors.
ROAD COSNTRUCTIONS EQUIPMENT
Batching and min9ing plans.
Vibrating compactors.
Pneumatic-tired rollers.
DIASTER MANAGEMNT EQUIPMENT
Radio-controls dozers.
Hydraulic excavators with demolition attachments
ENERGY
Diesel genets-230, 360, 550KVP.
INDUSTRIAL AND AUTOMATION
Industrial welding robots.
Machine tending robots.
AREA OF OPERATION
BEML, being a public sector undertaking operates well in the global market also. The company’s
international divisions are involved in large trading as well as counter trade in countries
worldwide covering Asia and Middle East beside entering into European through UK, Italy, and
Greece.
The company commenced it overseas operations in 1969-00 and has exposed earth moving
equipment’s, rail coaches and sapper parts valued at several million US $ to countries all over
the world.
As a recognized export house, BEML has expanded operations to include exports of engineering
goods, defense items commodities, and undertaking of project management and turnkey
contracts. Despite the pressure of highly competitive market for heavy construction and mining
equipment, BEML’S export is attributed to good quality equipments and very efficient after sales
services. Fully satisfied with the BEML’s services, customers in several countries have been
placing repeat orders for the company’s equipment’s. The company is looking at global market
for future growth several countries have been identified for making a foray. In keeping with this,
the export target for the year 2009-2010 has been fixed at over Rs 500 crores, which are stiff
considering the strong foothold of competition in the world market. Exports were made to
countries like Syria, Tunisia, South Africa, Afghanistan, Bhutan, Abu Dhabi, Jordan,
Bangladesh, and Suriname in Latin America.
COMPETITORS OF BEML
COMPETITORS OF BEML
Railways Integral coach factory permbur, RCF at
Karputhala
Bulldozers Caterpillars (Hindustan Motors)
Excavators L&T, Escort, TATA
Dumpers Hindustan Motors, Volvo, TATA, TELCO,
Ashok Leyland
PRODUCT OF THEIR COLLABORATION:
PRODUCT OF COLLABORATION
Product collaboration
210M Dump Truck KOMATSU Mining System, USA
445E Electric Dump Truck KOMATSU Mining System, USA
Walking Draglines BUCYRUS International, USA
182m 10cu.m Rope Shovel BUCYRUS International, USA
Heavy Duty Trucks for defense TETRA SIPOX
METRO RAILWAY ROTEM, SOUTH KOREA
Diesel Engine KOMATSU, JAPAN
BANKERS
SBI.
Canara Bank.
SBM (State Bank Of Mysore)
Punjab National Bank.
Bank of India.
State Bank of Bikaner & Jaipur.
Central Bank of India.
INFRASTRUCTURAL FACILITIES:
BEML LIMITED
Name of the company: BEML LTD
Registered Office: BEML Soudha (Bangalore)
Corporate Office NO-23/14TH Main
S.R Nagar Bangalore-560027
Group: Public Sector Undertaking.
Activity of Manufacturing of Earth Moving Equipment,
BEML: rail Couches, and defense automotive vehicle.
Date of establishment: January, 1965.
OTHER COMPLEX
KGF COMPLEX (KOLAR GOLD FIELD)
Kolar Gold Field, located 100 km from Bangalore, spread over an area of 1850 acres; BEML has
established an extensive manufacturing base. A skilled work force of over 7400 turnout state of
the art bulldozer, hydraulic excavator, wheel force of over 7500 turnout state of the art
bulldozer, hydraulic excavator, wheel loaders, rope shoves, and walking draglines for mining and
construction industry Sophisticated CNC machines and latest technology welding equipment
have been installed.
MYSORE COMPLEX
The biggest dump truck factory in India is located at BEML’S Mysore Complex.
This unit is located about 180kms from Bangalore and occupies about 178 acres of
land, having a work force of about 2500 employees.
AREA OF OPERATION
BEML has 3 international offices, 10 regional offices and 15 districts offices and it also have 4
activity center.
INTERNATIONAL OFFIC ES”
CHINA - BEML Ltd Shanghai representative office, Shanghai PC: 200336
MALAYSIA – BEML (MALAYSIA) SNDBHD, Johar Bharu, Malaysia.
BRAZIL – BEML Brazil, state of expirito Santo Brazil.
GLOBAL OFFICE
MOROCCO
CHINA
SINGAPORE
ASSEMBLY PLANT
Brazil
GLOBAL PARTS WAREHOUSE
MALAYSIA
REGIONAL OFFICE
Bilaspur.
Chennai.
Hyderabad.
Kolkata.
Mumbai.
Nagpur.
New Delhi.
Ranchi
Jabalpur.
Singrauli.
DISTRICT OFFICE
Ahmadabad.
Asansol
Bhilai.
Bhubaneswar.
Chandrapur.
Guwahati.
Jammu.
Madurai.
Naively.
Pan Jim.
Udaipur.
THE COMPANYS SHARES ARE LISTED ON THE FOLLOWING STOCK
EXCHANGES:
The Bangalore Stock Exchange Limited, Bangalore BEML.
The Bombay Stock Exchange Limited, Mumbai 5006648.
The National Stock Exchange of India Limited, Mumbai BEML.
IT HAS BAHGGED “National Safety Awards” for many times.
Corporate Excellence Award for outstanding performances in 1987-88 among all PSU.
Best Production Award for 1989-90 received from vice-resident of India.
Armed Forces Slag Award 2004-05 has been confessed on BEML by the Indian Institution
Of Industrial Engineering, a pioneer body serving since 1957 for the cause of industrial
growth in India.
BEML is among the five PSU’s gained entry for the nomination of “Best PSU Award -
2006.”
“Honorary Fellowship Award” for CMD of BEML for his exemplary contribution as CEO of
BEML.
NIRYAT SHREE GOLD Trophy.
We at BEML manufactures of equipment for construction and mining and metro defense are
dedicated to protect and conserve the environment by minimizing eh adverse impact of the
process, product and services on the environment.
OBJECTIVE
As part EHS policy we shall continuously strive and are committed to:
Provide health and safe environment to all employees and interested parties.
Comply with all applicable legal and regulatory requirements.
Conserve natural resources and initiate and achieve energy saving.
Minimize process waste, promote recovery, reuse, and recycling of material and develop eco
friendly waste disposal system.
Improve to minimize environment health and safety hazards and hazardous process.
Train and build awareness among all our employees of EHS issues on a continues basis.
Communicate EHS policy to all employees, stake holder, investors, and other.
BOARD OF DIRECTORS
Chairman and Managing Director:
Sri V.RS. Natarajan.
Functional Directors
Sri V Mohan, Director (Defense)
Shri M. Poongavanam, Director (Mining & Construction)
Shri P Dwarakanath, Director (Metro & Rail)
Shri M Pitchiah, Director (Finance)
Shri M Nellaiappan, Director (HR)
OFFICIAL DIRECTOR
Shri Satyajeet Ranjan, Jt. Secretary (Exports), Ministry Of Defense
Shri P.K. Mishra., Addl, Financial Advisor & Jt. Secretary, Ministry Of Defense (Finance)
Independent Directors
Shri J.P, Singh, IAS (Retd)
Shri M.B.N. Roa
Shri J.P., Batra
Award
CMD received the 'SCOPE Award for Excellence and Outstanding Contribution to the Public
Sector Management - Medium PSE CategoryD' for the year 2006-07
CMD received the 'BEST PSU AWARD' instituted by India's leading B School, Indian
Institute of Planning & Management held at Bangalore on 25th March 2009
Southern Region of EEPC India awarded BEML with 'Silver Shield' for Star Performer as a
Large Enterprise for its outstanding contribution to Engineering Export held at Trivandrum
on 11th February 2009
CDM received the RAKSHA MANTRI’S award for excellence for best performance in
export held at new Delhi on 7th November 2008
CDM received the ROTARIAN AWARD of vocational excellence in their district
conference held in Bangalore on 9th February 2008
CDM received the BEST CEO AWARD from Mr.SK Sharma national president, Indian
institute of material management (IIMM) on 30th November 2007 at Chandigarh
Conferred STAR PERFORMER AWARD by engineering export promotion council,
southern region on 24th November 2007
Award for excellence in technology and innovation from confederation of Indian
industries(CII)
Rated AAA by ICRA in January 2007
Received GOLDEN PEACOCK AWARD for innovation management from institute of
directors on 14th January 2007
Ranked 4th best wealth creator among 21 best wealth creators of India and the 1ST AMONG
PSUs(USS 1 in 2002 has appreciated to US$ 62.64 IN 2007)by Dalal street magazine
Conferred MINI RATNA CATEGORY-1 status by ministry of defense, govt. of India during
august2006
Received ENTERPRISE EXCELLENCE AWARD from Indian institute of industrial
engineers during may2006
Received EXCELLENT MOU rating in 2006-2006
AWARD FOR OUTSTANDING PERFORMANCE from engineering exports promotion
council (EEPC)
Award for the largest and most profitable construction world, NICMAR 2007
Awarded UDYOG RATNA AWARD(gold trophy) by institute of economics studies, New
Delhi, during October 2004
Received NIRYAT SHREE GOLD TROPHY from federation of Indian export organization
for its outstanding performance in exports house/Non SSI category for the financial year
2000-01
National award for import substitution for crawler mounted shovels(2 to 2.5 bucket
Cu.M.capacity)
Products of BEML
Mining and construction
RAIL AND METRO
Defence equipments
Analysis And
Interpretation
Of
Data
CHAPTER IV
ANALYSIS AND INTERPRETATION OF DATA
This study was conducted to analyze the performance appraisal system in BEML LTD
Bangalore complex. The data has been collected from 50 employees at BEML LTD, through
questionnaire, Personal Interview and observation method. After data had been collected, the
data has been analyzed in a master tabular form. The analysis of data requires a number of
closely related operations such as establishment of categories, the application of these categories
to raw data through tabulation and drawing statically inferences. From the master table various
summery tables were prepared. The data thus collected is tabulated and interpreted. After
analyzing the data, the findings are presented in the form of Bar charts and . The findings have
been presented along with the respective tabular column, graphs and interpretation
Age group of the respondents
SL NO Age group No of respondents Percentage
1 22-31 years
2 4
2 32-41 years 6
12
3 42-51 years 21 42
4 More then 51 years 21 42
TOTAL 50 100
Analysis
Respondents are of different age group. employees of agree group 50 and above are 42
percent,42 percent belong o 42 to 51 years while those who belong to percent 6.while 2 percent
belong to the age group from 22 to 31years
Age group of the respondents
22-31 YEARS 32-41 YEARS 42-51 YEARS More then 51 years
0
5
10
15
20
25
30
35
40
45
No.of respondentsPercentage
Interpretation
It is found that the majority of the respondents were in the age group of 42 to 51 years and
above. This clearly reveals that respondents are seniors and experienced in the organization
Performance Appraisal system is needed in the organization.
Table no-1
Sl no Particulars No of respondents percentage
1Strongly agree 15 30
2 Agree 33 66
3 Cannot say 02 04
4 Disagree - -
5 Strongly disagree - -
Total 50 100
Analysis
It is observed that 66 percent of the respondents agree that performance appraisal system is
needed in the organization followed by 30 percentage who strongly agree for the same. None of
the respondents disagree or strongly disagree.
Performance Appraisal system is needed in the organization.
Chart no-1
30%
66%
4%
No of respondents
Strongly agreeagreeCannot sayDisagree Strongly disagree
Interpretation
It is therefore inferred that a majority of the respondents agree that they need performance
appraisal system in the organization.2 percent of the respondents do not agree with the statement.
Are you aware of Performance Appraisal
Table no-2
Sl no particulars No of respondents percentage
1Strongly agree 05 10
2 Agree 42 84
3 Cannot say 02 04
4 Disagree 01 02
5 Strongly disagree - -
Total 50 100
Analysis
The respondents were asked about the awareness of performance appraisal system in the
organization.84 percentage of the respondents agree that they are aware of performance appraisal
system. None of the respondents strongly disagree for the above statement.
Are you aware of Performance Appraisal
Chart no -2
Strongly agree agree Cannot say Disagree Strongly disagree
0
10
20
30
40
50
60
70
80
90
10
84
4 2 0
Chart Title
No of respondentspercentage
Interpretation:
It is therefore inferred that a majority of the respondents agree that they are aware of the
performance appraisal system in the organization. 2 percent of the respondents do not agree with
the statement.
Satisfied with the existing Performance Appraisal system.
Table no-3
Sl no particulars No of respondents percentage
1Strongly agree 03 06
2 Agree 33 66
3 Cannot say 11 22
4 Disagree 03 06
5 Strongly disagree - -
Total 50 100
Analysis
As per the above data 66 percent of the respondents agree that they are satisfied with the existing
performance appraisal system. None of the respondents strongly disagree.
Satisfied with the existing Performance Appraisal system.
Chart no -3
6%
66%
22%6%
No of respondents
Strongly agreeagreeCannot sayDisagreeStrongly disagree
Interpretation:
Satisfaction level of the employees regarding performance appraisal system is important. When
asked about their satisfaction majority of the respondents agree with the existing performance
appraisal system. 22 percent of the respondents are in dilemma whether to agree or disagree.
The key Performance area is identified related to your job and evaluation is
done based on your Performance.
Table no-4
Sl no particulars No of respondents percentage
1Strongly agree 04 08
2 Agree 38 76
3 Cannot say 05 10
4 Disagree 02 04
5 Strongly disagree 1 2
Total 50 100
Analysis
From the above data it is analyzed that 76 percent agree that the key performance area is
identified related to your job and evaluation is done based on your performance 8 percent of
respondents strongly agree,10 percent were neutral, disagree and strongly disagree 4 percent and
8 percent respectively.
The key Performance area is identified related to your job and evaluation is
done based on your Performance
Chart no -4
76%
10%
4% 2%
agreeCannot sayDisagreeStrongly disagree
Interpretation:
Performance appraisal is based on certain parameters which include discipline; productivity
behavior etc. when asked whether the respondents would like to be appraised based on certain
key performance, majority of the respondents agreed with the statement.
Performance Appraisal system helps you to understand the overall business
goals and plans of the organization.
Table no-5
Sl no Particulars No of respondents Percentage
1Strongly agree 06 12
2 Agree 35 70
3 Cannot say 07 14
4 Disagree 02 04
5 Strongly disagree - -
Total 50 100
Analysis
From the above data we can analysis that the 70 percent of respondents agree that performance
appraisal system helps you to understand the overall business goals and plans of the organization
and 12 percent of the respondents strongly agree, 14 percent were neutral,4 percent disagree.
None of the employee strongly disagreed.
Performance Appraisal system helps you to understand the overall business
goals and plans of the organization.
Chart no -5
No of respondents
Strongly agreeagreeCannot sayDisagreeStrongly disagree
Interpretation:
Does Performance appraisal system helps to understand the business goals – This question was
put forth for the respondents. Nearly 70 percent of the respondents agreed with the statement.
The Appraisal method helps you to identify the factors that
affect your Performance.
Table no-6
Sl no particulars No of respondents percentage
1Strongly agree 05 10
2 Agree 31 62
3 Cannot say 13 26
4 Disagree 01 02
5 Strongly disagree - -
Total 50 100
Analysis
From the above data we can analyze that the 62 percent respondents agree that the appraisal
method helps them to identify the factors that affect their performance.10 percent respondents
strongly agree, 26 percent were neutral,2 percent disagreed. None of the respondents strongly
disagree.
The Appraisal method helps you to identify the factors that
affect your Performance.
Chart no -6
10%
62%
26%2%
No of respondents
Strongly agreeagreeCannot sayDisagreeStrongly disagree
Interpretation:
Method of appraisal is important. The employees would like to know the factors which influence
the performance, 62 percent of the respondents agreed that appraisal method used help identify
the factors which effect the performance.
The Appraisal method makes you clear of what is expected from you regarding your Performance.
Table no-7
Sl no particulars No of respondents percentage
1Strongly agree 05 10
2 Agree 41 82
3 Cannot say 04 08
4 Disagree - -
5 Strongly disagree - -
Total 50 100
Analysis
From the above data we can analyze that 82 percent of respondents agree that the appraisal
method makes them clear of what is expected from them regarding their performance,10 percent
respondents strongly agree,8 percent were neutral. None of the respondents disagree or strongly
disagree.
The Appraisal method makes you clear of what is expected from you
regarding your Performance.
Chart no -7
Strongly agree agree Cannot say Disagree Strongly disagree
0
10
20
30
40
50
60
70
80
90
No of respondentspercentage
Interpretation:
Different approaches are made with regard to appraisal. These approaches need to clear what is
expected from the employees. Nearly 82 percent of the respondents feel that such methods give
an indication what is expected from them.
You and your Appraiser both have clear understanding on the objective of the
Appraisal System.
Table no-8
Sl no particulars No of respondents percentage
1Strongly agree 05 10
2 Agree 36 72
3 Cannot say 09 18
4 Disagree - -
5 Strongly disagree - -
Total 50 100
Analysis
From the above data analyzed that 72 percent of respondents agree that their and there appraiser
both have clear understanding of the objectives of the appraisal system,10 percent of respondents
strongly agree,18 percent were neutral. None of the respondents disagreed or strongly disagreed.
You and your Appraiser both have clear understanding on the objective of the
Appraisal System.
Chart no -8
10%
72%
18%
No of respondents
Strongly agreeagreeCannot sayDisagreeStrongly disagree
Interpretation
A good understanding between the appraise and appraiser is required. A majority of the
respondents says that they have clear understanding about the objective of the appraisal.
Appraiser rates your Performance based on the work output.
Table no-9
Sl no particulars No of respondents percentage
1Strongly agree 05 10
2 Agree 39 78
3 Cannot say 04 08
4 Disagree 02 04
5 Strongly disagree - -
Total 50 100
Analysis
From the above data we can analyze that 78 percent respondents agree that their appraiser rates
their performance based on the work output of the employees,10 percent respondents strongly
agree,8 percent were neutral,2 percent disagreed. None of the respondents strongly disagreed.
Appraiser rates your Performance based on the work output.
Chart no -9
10%
78%
8%4%
No of respondents
Strongly agreeagreeCannot sayDisagreeStrongly disagree
Interpretation:
Among different parameters for appraisal work output is one important factor. 78percent of the
respondents agree that their appraiser rates their performance based on their work output.
The Appraisal system helps in open communication between you and your
Appraiser through Performance review discussion.
Table no-10
Sl no particulars No of respondents percentage
1Strongly agree 07 14
2 Agree 38 76
3 Cannot say 04 08
4 Disagree 01 02
5 Strongly disagree - -
Total 50 100
Analysis
From the above data it is analyzed that 76 percent of respondents agree that the appraisal system
helps in open communication between them and their appraiser through performance review
discussion, 14 percent of respondents strongly agree, 8 percent were neutral,2 percent disagreed.
None of the respondents strongly disagreed.
The Appraisal system helps in open communication between you and your
Appraiser through Performance review discussion.
Chart no -10
14%
76%
8% 2%
No of respondents
Strongly agreeagreeCannot sayDisagreeStrongly disagree
Interpretation
Communication between appraiser and appraise is important. A majority of the respondents agree that the appraiser system helps in open communication
The Performance Appraisal is by self ( ) superior.( )
Table no-11
Sl no Particulars No of respondents Percentage
1 Superior 35 70
2 Self 15 30
Total 50 100
Analysis
From the above data we analyze that 70 percent of the respondents agree that the performance
appraisal is done by the superior and rest 30 percent of respondents say that they self appraise
their performance
The Performance Appraisal is by self ( ) superior.( )
Chart no -11
70%
30%
No of respondents
superiorself
Interpretation:
70 percent of the respondents say performance is done by the supervisor; self appraisal is made
by remaining 30 percent.
The Performance Appraisal helps to build team work.
Table no-12
Sl no Particulars No of respondents Percentage
1Strongly agree 11 22
2 Agree 34 68
3 Cannot say 03 06
4 Disagree 02 04
5 Strongly disagree - -
Total 50 100
Analysis
It is observed that 68 percent of the respondents agree that there performance appraisal helps to
built team work,22 percent strongly agree,6 percent were neutral,4 percent disagreed. None of
them strongly disagreed.
The Performance Appraisal helps to build team work
Chart no -12
22%
68%
6%4%
No of respondents
Strongly agreeagreeCannot sayDisagreeStrongly disagree
Interpretation:
As regard to building team work question was asked connecting team work and performance. A
major portion of the respondents agree performance system helps to build team work.
The Performance Appraisal is helpful in reducing grievance among the
employee.
Table no-13
Sl no Particulars No of respondents Percentage
1Strongly agree 06 12
2 Agree 32 64
3 Cannot say 10 20
4 Disagree 02 04
5 Strongly disagree - -
Total 50 100
Analysis
The respondents were asked that does the performance appraisal help in reducing grievance
among the employee.64 percent respondents agreed,12 percent strongly agreed, 20 percent were
neutral,4 percent disagreed. None of the respondents strongly disagreed.
The Performance Appraisal is helpful in reducing grievance among the
employee.
Chart no -13
12%
64%
20% 4%
No of respondents
Strongly agreeagreeCannot sayDisagreeStrongly disagree
Interpretation:
As high as 64 percent of the respondents feel that performance appraisal system helps in
reducing grievances.
The Performance Appraisal is helpful for improving personnel skills
Table no-14
Sl no particulars No of respondents percentage
1Strongly agree 14 28
2 Agree 32 64
3 Cannot say 02 04
4 Disagree 02 04
5 Strongly disagree - -
Total 50 100
Analysis
From the above data it is analyzed that 64 percent of the respondents agree that the performance
appraisal is helpful for improving personnel skills,28 percent respondents strongly agree,4
percent were neutral, 2 percent disagreed, none of the respondents strongly disagreed.
The Performance Appraisal is helpful for improving personnel skills
Chart no -14
28%
64%
4%4%
No of respondents
Strongly agreeagreeCannot sayDisagreeStrongly disagree
Interpretation:
Skills both personal and technical are required to perform duties in the organization. A majority
of the respondents feel that the appraisal system helpful in improving personal skills.
In your opinion, training is helpful in achieving better Performance.
Table no-15
Sl no particulars No of respondents percentage
1Strongly agree 16 32
2 Agree 24 48
3 Cannot say 09 18
4 Disagree 01 02
5 Strongly disagree - -
Total 50 100
Analysis
From the above data we can analysis that 48 percent of respondents agree that training is helpful
in achieving better performance,32 percent of respondents strongly agree,18 percent were
neutral,2 percent disagreed. None of the respondents strongly disagreed.
In your opinion, training is helpful in achieving better Performance
Chart no -15
Strongly agree agree Cannot say Disagree Strongly disagree
0
5
10
15
20
25
30
35
40
45
50
No of respondentspercentage
Interpretation:
Training is essential to discharge the duties effectively . Due to emerging technologies
employees are asked to take up different duties, in this regard 48percent of the respondents agree
that training is helpful in achieving better performance followed by 32 percent who strongly
agree with this statement.
The Performance rating are done Periodically.
Table no-16
Sl no particulars No of respondents Percentage
1Strongly agree 02 04
2 Agree 36 72
3 Cannot say 09 18
4 Disagree 03 06
5 Strongly disagree - -
Total 50 100
Analysis
From the above table it is absorbed that 72 percent of the respondents agree that the performance
rating is done periodically,4 percent of the respondents strongly agree,18 percent were neutral ,6
percent disagreed. None of the respondents disagreed.
The Performance rating are done periodically
Chart no -16
Strongly agree agree Cannot say Disagree Strongly disagree
0
10
20
30
40
50
60
70
80
No of respondentsPercentage
Interpretation:
Appraisal is done periodically. This differs from organization to organization. In BEML the
performance appraisal system is carried out periodically as opioned by the respondents.
The Performance Appraisal system helps to identify the strength and
weakness of the employee.
Table no-17
Sl no particulars No of respondents percentage
1Strongly agree 05 10
2 Agree 30 60
3 Cannot say 11 22
4 Disagree 04 08
5 Strongly disagree - -
Total 50 100
Analysis
From the above data we can analysis that 60 percent of the respondents agree that the
performance appraisal system helps to identify the strength and weakness of the employee,10
percent respondents strongly agree,22 percent were neutral,8 percent disagreed, none of the
respondents strongly disagreed.
The Performance Appraisal system helps to identify the strength and
weakness of the employee.
Chart no-17
Strongly agree agree
Cannot sayDisagree
Strongly disagree
0
10
20
30
40
50
60
No of respondentspercentage
Interpretation:
60 percent of the respondents agree that performance appraisal system to identify strength and
weakness. 22percent of the respondents are not able to say anything on the count.
The Performance rating is helpful for the management to provide employee
counseling.
Table no-18
Sl no particulars No of respondents percentage
1Strongly agree 05 10
2 Agree 35 70
3 Cannot say 06 12
4 Disagree 04 08
5 Strongly disagree - -
Total 50 100
Analysis
From the above table we can observed that the respondents were asked whether performance
rating is helpful for the management to provide employee counseling.70 percent of the
respondents agreed,10 percent of respondents strongly agreed,12 percent of respondents were
neutral,8 percent of respondents disagreed. None of the respondents strongly disagreed.
The Performance rating is helpful for the management to provide employee
counseling.
Chart no-18
Strongly agree agree Cannot say Disagree Strongly disagree
0
10
20
30
40
50
60
70
No of respondentspercentage
Interpretation
Employee counseling is a process where employee’s difficulties are discussed with the
counselor. In this regard the majority of the respondents feel employee counseling is required
based on the performance rating.
Promotion is purely based on Performance.
Table no-19
Sl no particulars No of respondents percentage
1Strongly agree 05 10
2 Agree 30 60
3 Cannot say 11 22
4 Disagree 04 08
5 Strongly disagree - -
Total 50 100
Analysis
From the above data we can analysis that 60 percent of the respondents agree that the promotion
is the organization is purely based on performance,10 percent of the respondents strongly
agree,22 percent were neutral, 8 percent disagreed. None of the respondents strongly disagreed.
Promotion is purely based on Performance.
Chart no-19
10%
60%
22%
8%
No of respondents
Strongly agreeagreeCannot sayDisagreeStrongly disagree
Interpretation
Recent trend in the organization is pay for performance; similarly promotion is awarded based on
the performance.
In Public sector Company the promotion is based on service seniority but nearly 60 percent other
respondents feel that the promotion should be truly based on performance.
Your superior guide you to improve your Performance.
Table no-20
Sl no particulars No of respondents percentage
1Strongly agree 11 22
2 Agree 27 54
3 Cannot say 08 16
4 Disagree 04 08
5 Strongly disagree - -
Total 50 100
Analysis
The respondents were asked whether their superior guide them to improve their performance,54
percent of the respondents agreed,22 percent strongly agreed,16 percent were neutral,8 percent
disagreed. None of them strongly disagreed.
Your superior guide you to improve your Performance
Chart no-20
22%
54%
16% 8%
No of respondents
Strongly agreeagreeCannot sayDisagreeStrongly disagree
Interpretation
Proper guidance is required to improve the performance, 76 percent of the respondents either
strongly agree or agree, guidance by the supervisor is essential for better performance.
Performance Appraisal helps in achieving the desired target of the
organization.
Table no-21
Sl no Particulars No of respondents percentage
1Strongly agree 12 24
2 Agree 35 70
3 Cannot say 02 04
4 Disagree 01 02
5 Strongly disagree - -
Total 50 100
Analysis
From the above data it is analyzed that 70 percent of respondents agree that performance
appraisal helps in achieving the desired target of the organization,24 percent of respondents
strongly agree,4 percent were neutral,2 percent disagreed. None of the respondents strongly
disagreed.
Performance Appraisal helps in achieving the desired target of the
organization.
Chart no-21
24%
70%
4%2%
No of respondents
Strongly agreeagreeCannot sayDisagreeStrongly disagree
Interpretation
Almost all the organization are striving hard to achieve the desired target. when asked about the
opinion of the respondent regarding the above statement as high as 94 percent agree or strongly
agree with the above statement.
Performance Appraisal increases employee motivation.
Table no-22
Sl no particulars No of respondents Percentage
1Strongly agree 12 24
2 Agree 31 62
3 Cannot say 06 12
4 Disagree 01 02
5 Strongly disagree - -
Total 50 100
Analysis
It is observed from the above table that 62 percent of the respondents agree that the performance
appraisal increases employees motivation,24 percent of respondents strongly agree,12 percent
respondents were neutral, 2 percent disagreed. None of the respondents disagreed.
Performance Appraisal increases employee motivation
Chart no-22
Strongly agree agree Cannot say Disagree Strongly disagree
0
10
20
30
40
50
60
70
No of respondentspercentage
Interpretation
Motivation is a factor it promotes interest of the employees by periodical performance appraisal
employees may increase 86 percent of the respondents are of the opinion that performance
appraisal increases employee motivation.
Superior spends enough time to Performance review discussion.
Table no -23
Sl no particulars No of respondents Percentage
1Strongly agree 04 08
2 Agree 27 54
3 Cannot say 07 14
4 Disagree 11 22
5 Strongly disagree 01 02
Total 50 100
Analysis
From the above data we analyze that 54 percent of the respondents agreed that superiors spend
enough time to performance review discussion,8 percent of respondents strongly agree,14
percent were neutral,22 percent disagreed. 2 percent strongly disagreed.
Superior spends enough time to Performance review discussion.
Chart no-23
8%
54%
14%
22%
2%
No of respondents
Strongly agreeagreeCannot sayDisagreeStrongly disagree
Interpretation
Performance review discussion is carried out in most of the organization, superior who is the
appraiser has to spend some times with the appraise for effective performance appraisal.
Although 62 percent of the respondents either agree or strongly agree, 22 percent disagree. This
clearly indicates that superiors are not spending enough time with the appraise.
The HRD makes use of the Appraisal data for taking corrective decisions in
over all organizational development and individual development.
Table no-24
Sl no particulars No of respondents Percentage
1Strongly agree 04 08
2 Agree 27 54
3 Cannot say 07 14
4 Disagree 11 22
5 Strongly disagree 01 02
Total 50 100
Analysis
From the above table we can analysis that 54 percent of respondents agree that the HRD makes
use of the appraisal data for taking corrective decisions in overall organizational development
and individual development,8 percent of respondents strongly agree,14 percent were neutral, 22
percent disagreed, 2 percent strongly disagreed.
The HRD makes use of the Appraisal data for taking corrective decisions in
over all organizational development and individual development
Chart no-24
8%
54%
14%
22% 2%
No of respondents
Strongly agreeagreeCannot sayDisagreeStrongly disagree
Interpretation
The success of the organization depends on the person one of the factor required after appraisal
the data is used for corrective action in organization development and who individual
development, nearly 62 percent agree with the above statement while 24 percent either disagree
or strongly disagree.
Findings
&
CHAPTER V
FINDINGS
Majority of the respondents are between the age group of 40-50 and above 50 years, from
this we can find out that most of the respondents are experienced.
Out of 50 respondents, majority of them said that performance appraisal system in needed in
the organization.
84 percent of respondents in BEML are aware of performance appraisal
Satisfaction level of the employees regarding performance appraisal system is important.
When asked about their satisfaction majority of the respondents agree that they are satisfied.
based on certain key performance,
Performance appraisal system helps to understand the business goals – This question was put
forth for the respondents. Nearly 70 percent of the respondents agree.
Nearly 82 percent of the respondents feel that the appraisal method makes them clear of what
is expected from them regarding their performance this methods
72 percent of the respondents says that they have clear understanding about the objective of
the appraisal.
78percent of the respondents agree that their appraiser rates their performance based on their
work output.
A majority of the respondents agree that the appraiser system helps in open communication.
70 percent of the respondents say performance is done by the supervisor; self appraisal is
made by remaining 30 percent.
A major portion of the respondents agree performance system helps to build team work.
As high as 64 percent of the respondents feel that performance appraisal system helps in
reducing grievances
A majority of the respondents feel that the appraisal system helpful in improving personal
skills.
Due to emerging technologies employees are asked to take up different duties, in this regard
48 percent of the respondents agree that training is helpful in achieving better performance
followed by 32 percent who strongly agree with this statement.
In BEML 72 percent of respondents agree that the performance appraisal system is carried
out periodically.
Nearly 60 percent of the respondents agree that performance appraisal system to identify
strength and weakness
Employee counseling is a process where employee’s difficulties are discussed with the
counselor with regards to this 70 percent of the respondents agree
In Public sector Company the promotion is based on service seniority but nearly 60 percent
other respondents feel that the promotion should be truly based on performance.
76 percent of the respondents either strongly agree or agree that, guidance by the supervisor
is essential for better performance
Almost 70 percent of the respondents agree in the organization that they are striving hard to
achieve the desired target
Motivation is a factor that promotes interest of the employees by periodical performance
appraisal employees. 86 percent of the respondents agree with it
As most of the respondents disagree that superiors are not spending enough time with the
appraise.
54 percent of the respondents agree that The HRD makes use of the appraisal data for taking
corrective decisions in over all organizational development and individual development
SUGGESTIONS
It is suggested that company can adopt 360 degree appraisal method.
With having 360 degree appraisal in the company the employee’s efficiency and overall
efficiency can be improved.
There should have an option for Peer appraisal in the company.
As many of the employees are in between the age of 40-50 and above younger generations
should be recruited as they are more energetic.
Proper upgradation of performance related activities are to increased every year.
Promotions are usually given on the basis of seniority, it is suggested it should be based on
their performance and ability.
Personality development programmers can be conducted so as to improve the employee’s
performance towards reaching the objectives.
With the proper implementation of appraisal method in the company the employee’s are
initiated to take leadership in company’s activities which intern the soft skills of the
employee’s are developed
Motivational training can provided to uplift the efficiency level of the employee
Proper appraisal method can lead the company towards reaching its goals and objectives and
hence increase in productivity.
A periodical review of supervisory appraisal system can be effected for promotion and
training
Informal counseling can also be applied for any short coming of the appreisee.
CONCLUSION
The fate of the organization depends on the employees. The employees are a great assets of the
organization. One of the way in which effective and efficient persons are selected is through
performance appraisal. Every organization needs to concentrate more on this performance
appraisal. There should be no room for partiality or favoritism as far as performance appraisal is
concerned. The higher authorities must keep an eye on the performance appraisal and make
changes according to the changing circumstances
Performance appraisal is one of the significant tools of the modern personnel management,
which yields high return when it is done in a systematic and just manner, with minimum error.
Many of the function of personnel management like promotion, transfer, demotion, increments,
training and development are performed having performance appraisal as the basic foundation.
Performance appraisal forms as an important application in the area of motivation, good
mechanism superior subordinate relationship and an instrument to direct employees abilities to
overall organizational objectives
In BEML less care and time is given for performance appraisal. The approach to performance
appraisal as a routine affair which has to be shifted to purposive, developmental exercise. Only
then performance appraisal will have greater meaning.
This study helped me to gain practical exposure on my topic that is effectiveness of performance
appraisal of employee’s. which is one of the objectives of the study. The other objectives to get
the opinion of the employees on the variable aspects of the present performance appraisal system
in the company has been met with the kind of co-operation of respectable respondents.
For performances appraisal to be effective, proper motivation through all the possible ways
including training and development is necessary.
Bibliography
BIBLIGRAPHY
1) Books referred
ASWATHAPPA
“Human Resource Management”
5th Edition
Tata McGraw Hill Publishing Company Limited, 2007
APPANNAIAH REDDY,APARNA RAO
“Human Resource Management”
2nd Revised Edition
Himalaya Publishing House, 2007
Dr K.Ramachandra, Dr B.Chandrashekar, S.Shivakumar
“Business Research Methods”
1st Edition
Himalaya Publishing House,2006
P.Subba Roa
“Human Resource Management”
2nd Revised Edition
Himalaya Publishing House,Mumbai
P.Subba Roa
Personal management and HRD
Himalaya Publishing House
Tapomoy Deb
Performance appraisal and management
2) Journals
House journals of BEML Limited
3) Websites
www.beml.com
www.google.com
www.performance appraisal.com
Annexure
Annexure
Questionnaire on performance appraisal
Dear Sir/Madam
Employee information
Please tick whichever is applicable
NAME:
AGE:
22-31 years ( )
32-41 years ( )
42-51 years ( )
More than 51 years( )
GENDER:
Male ( )
Female ( )
1. Performance Appraisal system is needed in the organization.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
2. Are you aware of performance appraisal.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
3. Satisfied with the existing performance appraisal system.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
4. The key Performance area is identified related to your job and evaluation is
done based on your performance.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
5. Performance Appraisal system helps you to understand the overall business
goals and plans of the organization.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
6. The appraisal method helps you to identify the factors that affect your
performance.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
7. The appraisal method makes you clear of what is expected from you regarding
your performance.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
8. You and your appraiser both have clear understanding on the objective of the
appraisal system.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
9. Appraiser rates your performance based on the work output.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
10. The appraisal system helps in open communication between you and your
appraiser through performance review discussion.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
11. The performance appraisal system provides scope for reflection of your
personality factor and attributes requirement for your job performance.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
12. The performance appraisal is by self ( ) superior.( )
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
13. The performance appraisal helps to build team work.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
14. The performance appraisal is helpful in reducing grievance among the
employee.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
15. The performance appraisal is helpful for improving personnel skills,.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
16. In your opinion, training is helpful in achieving better performance.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
17. The performance rating are done periodically.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
18. The performance appraisal system helps to identify the strength and weakness
of the employee.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
19. The performance rating is helpful for the management to provide employee
counseling.]
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
20. Promotion is purely based on performance .
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
21. Your superior guide you to improve your performance.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
22. Performance appraisal helps in achieving the desired target of the organization.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
23 Performance appraisal increases employee motivation.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
24. Superior spend enough time to performance review discussion.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )
25. The HRD makes use of the appraisal data for taking corrective decisions in
over all organizational development and individual development.
a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )
d. Disagree ( ) e. Strongly disagree ( )